Friday, October 10, 2008

Drugs and Taxes

As you probably know by now, the Police Department dropped warrants on 30 street-level drug dealers this week. Also, Councilor Dean Tran is advocating for a tax cut for homeowners and businesses.

First, the Tran proposal. Tran has been an advocate of returning tax money to property tax payers since the got into office. He has always been very upfront and very honest in that he sees that as a top priority, and that he'll do whatever he can to make that happen.

However, Tran said this week money shouldn't be placed in free cash or stabilization, and instead returned to taxpayers. It's not a crazy idea, but is this the time?

The municipal finance geeks say a community's stabilization fund should equal 10 percent of the annual budget. I'm no economist (of course), but that seems very high, and pretty much unattainable for most communities. Hell, Leominster isn't even at that level. Fitchburg, in the meantime, is just over 1 percent.

That stabilization figure plays into bond ratings and all that stuff, and is supposed to be around for when times get bad. Sure, times are bad now, but you get the drift.

Here's the rub: Is the stabilization fund a luxury, or a necessity, like other parts of the budget? I'd say a stabilization fund of the above-mentioned 10 percent is a luxury. I think a realistic stabilization fund of several million dollars is a necessity (imagine if the city had a good stabilization fund before now. Could the library have stayed open? Could contracts and raises be settled?).

Complicating the thinking here is the relatively small discount of $5. It's the point that counts perhaps (and if you make that argument Tran here, shouldn't it apply to Wong's pay cut proposal?), but at this point, I'm willing to pay $5 for the prospect of some fiscal stability.

As for the drug sweep, it's good news that 30 drug dealers were targeted. The better news is that Police Chief Robert DeMoura is pushing other city departments to smother the buildings they live in with any building infraction they can find.

Pride reporter Karen Mann hit Wednesday's press conference, and when she was filling me in, I muttered "He didn't just steal from the Lowell playbook, he just took a copy with him." Karen said DeMoura has admitted as much.

When I worked in Lowell, these efforts were big deals. The city manager, the chief (maybe even DeMoura, for all I remember), the Building Department, the Board of Health, the Fire Department, and some others all stomped down the street, taking notes, writing tickets when possible, and later sending out letters. I tagged along as they pointed out what was wrong and what they were going to do about it. I took some time -- a year or more -- but I'd drive those side streets later and it was obvious things improved dramatically.

DeMoura noted that change won't come overnight, that it takes time for the landlords to get the message and get their act together. But hopefully city departments make it a priority and help the PD out on this one. It would be huge for some neighborhoods if this was done the right way and got the potential impact that is there.

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